A housing developer has secured a £60m loan to create Britain’s first modular build to rent scheme.
Essential Living will develop a 23-storey residential tower containing 249 homes in Creekside Wharf, Greenwich.
It will be one of the tallest residential buildings to be constructed using off-site methods. A quarter of the homes will be for affordable rent, with rents starting from 55 per cent of market rent to accommodate low-income households designated by the council.
The development is funded equally by Royal Bank of Scotland and HSBC.
Scott Hammond, managing director at Essential Living, said:
“The market is continuing to grow more comfortable with the emerging build to rent business model, and we are delighted to have finalised the debt position to bring forward one of our landmark developments. Against a backdrop of global uncertainty, we believe the defensive nature of residential investment will become increasingly attractive to investors and lenders.”
The project, designed by Assael Architecture, won a Project Award for Private Rented Sector Development at the Housing Design Awards and Best Housing Project at the Sunday Times British Home Awards.